TNB Renewables Acquires 70% Stake in 500 MWac Solar and 250 MW Battery Storage Project Through Bahau Energy Ventures in Malaysia

Luminous Aspect Sdn Bhd, a wholly owned subsidiary of IOI Corporation Berhad, has signed a joint venture and shareholders' agreement with TNB Renewables Sdn Bhd and CSP 500 MW Sdn Bhd for a 500 MWac solar photovoltaic project paired with a 250 MW/1,000 MWh battery energy storage system at Bahau in Negeri Sembilan.

IOI Advances First Large-Scale Renewable Project Under CRESS

The announcement, dated 3 November 2026, was made through IOI's corporate communications division and represents the group's first large-scale renewable energy undertaking under the Corporate Renewable Energy Supply Scheme, or CRESS.

TNB Renewables is a wholly owned subsidiary of Tenaga Nasional Berhad, while CSP 500 MW Sdn Bhd is described as a Consortium of SMEs.

How the Stakeholding Breaks Down

The project will be housed in Bahau Energy Ventures Sdn Bhd, a renewable energy development company created specifically for the venture. TNB Renewables will hold 70% of the vehicle, Luminous Aspect 25%, and the Consortium of SMEs the remaining 5%.

Alongside the joint venture signing, Bahau Energy Ventures entered into a long-term land lease agreement with IOI covering approximately 1,300 acres in Bahau. The arrangement makes IOI both a shareholder in the development company and the lessor of the site on which the project will be built.

Data Centre Demand Anchors the Revenue Side

Underpinning the project is TNB's long-term renewable energy offtake agreement with DayOne Data Centres Limited, a global digital infrastructure platform headquartered in Singapore.

Under that agreement, announced by the parties on 11 June 2025, DayOne is expected to procure up to 500 MWac of renewable energy over a 21-year period to support its data centre operations in Malaysia.

IOI Leadership Points to Recurring Income

Dato' Lee Yeow Chor, IOI Group Managing Director and Chief Executive, said IOI is pleased to take part in the development of one of the country's largest solar and energy storage projects under the CRESS framework, alongside an experienced renewable energy company as its partner.

He noted that, with the support of an off-take agreement with a reputable data centre company, IOI is optimistic the project will generate stable long-term recurring income for the group, both as a shareholder in Bahau Energy Ventures and as the lessor of the project land.

Renewables Push Tied to 2025-2029 Roadmap

IOI described the partnership as an opportunity to participate in developing large-scale renewable energy infrastructure in Malaysia and to contribute to the country's transition towards a low-carbon energy future.

The group stated that the venture aligns with its Five-Year Strategic Roadmap (2025-2029) to expand its renewables business portfolio, which currently consists of palm wood manufacturing and the processing of paper pulp from empty fruit bunch fibres.